Chesapeake Energy Corp. (NYSE: CHK) retained Goldman Sachs Bank USA, Citigroup Global Markets Inc. and MUFG to assist with the arrangement of a $1 billion secured five-year term loan, the company said Aug. 15.
The net proceeds from the loan will finance tender offers for unsecured notes. In a separate Aug. 15 press release, the company said that it began tender offers for $500 million in senior notes—up to $400 million of 6.25% euro-denominated notes due 2017; 6.5% notes due 2017 and 7.25% notes due 2018; and no more than $250 million of floating rate notes due 2019; 6.625% notes due 2020; 6.875% notes due 2020; 6.125% notes due 2021; 5.375% notes due 2021; 4.875% notes due 2022; and 5.75% notes due 2023.
Through the five-year term loan and the notes buyback, Oklahoma City-based Chesapeake will be able to retire debt with upcoming maturities.
The loan will be from one or more commercial banks, and will be secured by the same collateral securing the revolving credit facility.
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